6 banks to be merged by July, govt to take ownership
Special Correspondent :
Bangladesh Bank Governor Ahsan H Mansur has announced that six financially weakened banks will be merged by July this year, with the government taking temporary ownership to stabilize the country’s banking sector.
In an interview with Channel 24 aired on Monday, the governor stated that the move is part of a broader restructuring initiative following widespread irregularities and loan fraud that have plagued these institutions.
“We hope to bring the six banks under government ownership by July and provide the necessary capital,” Mansur said. “The central bank has already extended liquidity support to these banks.”
The six banks identified for the merger are First Security Islami Bank, Social Islami Bank, Union Bank, Global Bank, EXIM Bank, and National Bank. Of these, five were reportedly under the control of the controversial S Alam Group, while National Bank was controlled by businessman Nazrul Islam Majumder.
Governor Mansur clarified that the government ownership would be temporary. “Later, we will transfer their shares to the public and to international strategic investors,” he said. “But this will only happen after the banks are reorganized and made financially viable.”
The planned consolidation comes amid growing concerns over the state of Bangladesh’s banking system, which has faced mounting scrutiny in recent years due to rising non-performing loans and allegations of political patronage and mismanagement.
Critics argue that the current situation is the result of years of regulatory failure and political interference in the financial sector. Some have pointed fingers at previous administrations, accusing them of enabling corruption and weakening institutional oversight.
While the central bank hopes the merger will restore confidence and discipline in the banking system, economists warn that forced consolidation without proper accountability could set a dangerous precedent if structural problems remain unaddressed.
The government has yet to release further details on the mechanism of the merger or the timeline for returning the banks to private or public ownership.